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Home My WebLink AboutLEG 03-23 Report to Council Report Number: LEG 03-23 Date: February 27, 2023 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Regulation of Short Term Rentals -File: L-2100-001-22 Recommendation: 1.That Report LEG 03-23 regarding the regulation of short term rentals be received for information. Executive Summary: By Resolution #929/22 dated June 30, 2022, Council directed staff to report on the advisability of implementing a by-law similar the Town of Ajax’s By-law 115- 2013 (By-law for the Licensing and Regulating of Lodging Houses). Having reviewed Ajax’s By-law 115-2013, and having consulted with Ajax staff, City staff advise against the implementation of a similar by-law in Pickering. Such a by-law would not be effective in regulating short term rentals. Short term rentals (“STR”) of residential properties have become commonplace since the advent of platforms such as Airbnb and VRBO. In Pickering, STR properties have created some nuisance, noise and parking issues. Though problems caused by STRs to date have not been numerous, it is wise to proactively regulate them, to help ensure the safety of residential communities and to minimize the extent to which short term vacation rentals reduce the availability of housing for families in need of long term accommodation. In March, 2023, staff will submit a Report to Council regarding the need for a new Noise Control By-law. As part of that Report, staff will recommend that the new Noise Control By-law provide for significantly higher fines for noise violations caused by income-generating properties and activities. Such increased fines will be a strong deterrent to STRs causing nuisance problems for surrounding neighbourhoods. To more comprehensively regulate STRs, staff will be proposing a combination of zoning by- law provisions and a new licensing by-law. Zoning provisions will be considered by City Development staff in the context of the consolidated zoning by-law exercise. Planning policy objectives for regulating STRs will be identified. STR regulation will aid in the enforcement of the City’s existing noise, nuisance, property standards and parking by-laws, for the purpose of ensuring safe and welcoming neighbourhoods. STR regulation can also help ensure the availability of rental housing stock for long term rental, for the purpose of addressing the Provincially recognized housing shortage. -aft;of- Pl(KERJNG LEG 03-23 February 27, 2023 Subject: Short Term Rentals Page 2 Financial Implications: None Discussion: By Resolution #929/22 dated June 30, 2022, Council directed staff to report on the advisability of implementing a by-law similar the Town of Ajax’s By-law 115-2013 (By-law for the Licensing and Regulating of Lodging Houses). This direction resulted from concerns expressed by then Councillor Bill McLean about nuisances caused by specific STR properties. Having reviewed Ajax’s By-law 115-2013, and having consulted with Ajax staff, City staff advise against the implementation of a similar by-law in Pickering. Such a by-law would not be effective in regulating STRs. That being said, City staff recognize the importance of regulating STRs to minimize impacts on nearby properties and communities, and to address parking, nuisance and noise problems. After reviewing best practices in other Ontario municipalities, staff advise that a combined zoning-licensing approach is the best way to regulate STRs, and to minimize their impact on surrounding neighbourhoods. This approach will require new zoning by-law provisions which could be employed to define the areas in which STRs are permitted, limit STRs to the operator’s principal residence, and even to limit the total number of STRs in a given neighbourhood. The new zoning provisions will be considered by City Development staff in the context of the consolidated zoning by-law exercise. Planning policy objectives for regulating STRs will be identified. STR regulation will complement the enforcement of the City’s existing noise, nuisance, property standards and parking by-laws, for the purpose of ensuring safe and welcoming neighbourhoods. STR regulation can also help ensure the availability of rental housing stock for long term rental, for the purpose of addressing the Provincially recognized housing shortage. STR provisions will be included in the next draft of the City’s Consolidated Zoning By-law, which will then go to public consultation. City Development staff intend to present the final draft Consolidated Zoning By-law for Council’s consideration in Fall, 2023. Together with new zoning provisions, a companion licensing by-law could impose licence conditions on STR operators, such as: (a) payment of a licence fee, (b) compliance with set operating standards and applicable by-laws, (c) requiring renters to acknowledge and agree to set standards of behaviour, (d) maintaining and disclosing rental records; and (e) maintaining adequate insurance coverage. Licensing standards would enable the City to revoke the licence of STR operators who fail to comply with these licence conditions. Municipal Law Enforcement staff will draft the licensing by-law at the same time that work is underway on the zoning provisions. Public and industry consultation will help inform the content of the new licensing by- law. While work is underway on the zoning and licensing by-laws required to comprehensively regulate STRs, staff will recommend an enhancement to the City’s Noise Control By-law that will help minimize unwanted noise from STRs. In March, 2023, staff will submit a Report to Council regarding the need for a new Noise Control By-law. As part of that Report, staff will recommend that the new Noise Control By-law provide for significantly higher fines for noise violations caused by income-generating properties and activities. Such increased fines will be a strong deterrent to STRs causing nuisance problems for surrounding neighbourhoods. LEG 03-23 February 27, 2023 Subject: Short Term Rentals Page 3 Attachments: None. Prepared/Endorsed By: Paul Bigioni Director, Corporate Services & City Solicitor PB:ks Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: Original Signed By: